The Traderszone Network

Published in TZ Latest News 18 February, 2016 by The TZ Newswire Staff

Chinese Money-Market Rates Are Spiking As Post-New-Year Liquidity Hangover Hits

It would appear the Chinese central bank currency squeeze is back as money-market rates are exploding higher once again. With the outpuring of liquidity heading into the new-year holiday, the post-celebration hangover was always likely unless PBOC just kept pumping but judging by the 500bps spike in overnight Yuan interbank rates to 9.3%, more than a few banks are desperate for some liquidity. We note that the last six times that Chinese banks have suffered liquidity constraints, US equities have tumbled…

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